The common sense articles explain to everyone how to better manage their money are legion. They are often illustrated with pictures of women in their thirties, alluring, flanked by shopping bags to no longer know what to do. Whether intentional or not, the message conveyed is misleading, since it assumes that the difficulty some people have in managing their finances is due to their casual attitude toward spending.
We almost all have one day or another committed a small gap, but the problem is often far more important than that. Many people just do not know how to make good financial decisions – and who could blame them? The range of savings and investment options is such that it is difficult to decide where to invest its money or even how much. There is no silver bullet, but fortunately, you do not need a specialized finance degree to take your financial future into your own hands. Many people just do not know how to make good financial decisions – and who could blame them?
Here are three simple ways to progress confidently towards greater financial well-being.
1. Investing time in your own financial education
Whether you have a financial planner or not, it is important to acquire at least basic financial knowledge to understand why certain choices might suit you better than others. To do this, just spend an hour or two of your time each month deepening some financial planning issues, such as building a wealth, debt elimination, investment and estate planning. Read books or articles online, attend free seminars or webinars, and ask questions from people around you who manage their money well. It is important to acquire a minimum of basic financial knowledge.
The Financial Consumer Agency of Canada (FCAC) is a resource for anyone wanting to improve their financial literacy. It focuses on topics such as debt repayment, budgeting, saving, and better knowledge of financial products and services. Its website is full of articles, tools and calculators, all of which are more useful than the others. The Financial Literacy Self-Assessment QuestionnaireWhich it contains is particularly useful. It allows you to find out how you compare to most investors (better, lower or matching results) in keeping accounts, making ends meet, planning for the future, keeping you informed and choosing Of financial products. Once you have determined the areas in which you need help, you can find resources that will help you improve your results. Asking your financial planner to devote a little more time to some points at your next meeting could be part of it.
If your employer sponsors one or more financial education programs for your employees, this can be an effective way to increase your financial literacy and your level of confidence in making decisions. Such programs sometimes offer tools, such as the ProsperiGuide TE Consultants platform , which can help you learn how to make informed decisions. They tend to be more customizable than standard solutions offered by other resources, and can prove particularly beneficial if they allow you to meet a financial planner.
2. Take advantage of Employer Benefit and Retirement Plans
It is amazing how many people do not take advantage of the benefits offered by their employer under their benefits and retirement plans. This seems absurd – and yet it is explained by logical reasons. Sometimes employees do not fully understand the importance of the opportunity they are spending in terms of dollars or, if they are aware of it, they do not have the necessary budgeting skills to Set aside enough money to contribute to their plan. It would never happen to you to refuse $ 50,000 if someone gave them to you. It would never happen to you to refuse $ 50,000 if someone gave them to you.
So why let a program go by that does exactly the same thing? It is to your advantage to invest a little time and effort to understand the operation of the plan offered to you. Make an appointment with your plan representative and do not be afraid to ask a lot of questions. In addition, if your employer offers financial advisory services through an external provider, an individual meeting with a financial planner can be invaluable. These specialists are familiar with all aspects of financial planning very well and can help you assess your overall situation in order to adequately plan your short and long-term financial goals.
3. Learning to manage your debts
Debt is almost part of modern life. Well managed, it can be a way to achieve a goal, such as educating oneself, owning a home or starting your own business. Poorly managed, however, it can hurt financial welfare instead of improving it. You can not plan or save until you have learned how to manage your debts.
As debt management strategies are varied, you will have some effort to determine which is best suited to your situation. The website Government of Canada provides information and services related to debt management; you can do your research by starting there. A planner can save you money that you might never have thought of.
If you have access to financial planning services sponsored by your employer, do not hesitate to take advantage of this resource. A meeting with an approved financial planner has the advantage of making you benefit from more personalized debt management solutions. By looking at your overall financial situation, the planner helps you realize savings that you might never have thought of. For example, tax saving strategies can increase your total income, giving you access to additional funds to repay your debts faster.
Taking control of your financial well-being may not be the most exciting task, but when you do, you’ll be very happy to see your savings grow.